Just when you thought that Joe Biden’s disastrous economy couldn’t get much worse, Walmart is now offering “Buy Now, Pay Later” (BNPL) loans at its self-checkout kiosks in many stores. Americans are already facing insurmountable credit card debt and a total lack of savings. Affirm Holdings says its BNPL service is now available at more than 4,500 Walmart stores nationwide.
Customers can now spread out their payments for most items purchased at Walmart over a period of up to 24 months. This includes toys, clothing, electronics, and other stuff (everything except groceries, but that may be coming soon).
A spokesperson for Affirm Holdings stated, “Recent Affirm research revealed that more than half of Americans (54%) are looking for retailers to offer a buy now, pay later option at checkout. Moreover, we’ve found that 76% of consumers would either delay or not make a purchase without Affirm.”
The Bank for International Settlements and several government agencies have been trying to warn consumers about the risks of BNPL loans for months now. In November, the US Office of the Comptroller of the Currency (OCC) issued a warning about the use of BNPL loans. The OCC is one of the main banking regulators in the US.
The OCC says that overusing BNPL loans and a lack of understanding about the nature of the payment structure on these loans is going to lead to disastrous consequences for buyers if they miss any payments. BNPL is mainly being used by younger adults, especially those with maxed-out credit cards and low education levels.
Other major retail big-box stores may soon follow Walmart’s lead and begin offering BNPL loans. It’s never a good sign for the economy when retailers or lenders expand the purchasing power of people who can’t afford to keep up with their payments.
